Lack of business knowledge
This can be the other side to the problem of lack of independence. Potential non-executive directors who have good knowledge of the business and industry may have gained that knowledge through links with the company in the past.
Lack of human resource management
Limited time may mean that non-executive directors do not have proper induction into the company, nor proper updating and refreshment of their skills and knowledge of the company. Their performance may not be appraised regularly; it should form part of an annual appraisal of the board’s activities.
